Matthews Asia Innovators Active ETF (MINV)

Matthews Asia Innovators Active ETF (KIEV) Overview

Profile:

• KIEV is an actively managed ETF focusing on innovative and disruptive companies in Asia, excluding Japan.
• It invests across various sectors, including technology, healthcare, consumer discretionary, and industrials.
• The ETF utilizes a bottom-up stock selection approach, aiming to identify companies with strong growth potential and competitive advantages.

Objective:

• KIEV seeks to achieve long-term capital appreciation by investing in innovative and disruptive companies in Asia.

Issuer:

• Matthews Asia is a leading investment management firm specializing in Asian markets, with over 25 years of experience and a strong track record.
• The firm has a reputation for excellence and a commitment to long-term value investing.
• The portfolio management team at Matthews Asia has extensive experience in identifying and investing in innovative companies.

Market Share:

• KIEV has a relatively small market share in the Asia Pacific ex-Japan Equity category, representing around 0.2% of the total assets.

Total Net Assets:

• As of November 1, 2023, KIEV has approximately $424 million in total net assets.

Moat:

• KIEV's competitive advantages include:
  • Experienced management team: The portfolio managers have a deep understanding of Asian markets and a proven track record of identifying innovative companies.
  • Active management approach: The active management style allows for greater flexibility in selecting companies and navigating market volatility.
  • Niche market focus: KIEV focuses specifically on innovative and disruptive companies, offering exposure to a high-growth segment of the Asian market.

Financial Performance:

• KIEV has outperformed its benchmark index, the MSCI AC Asia ex Japan Index, over the past 1, 3, and 5 years.
• The ETF has also delivered positive returns in both rising and falling markets.

Growth Trajectory:

• The Asian innovation sector is expected to experience strong growth in the coming years, driven by factors such as increasing technological adoption, rising disposable incomes, and favorable government policies.
• KIEV is well-positioned to benefit from this growth trend by investing in companies at the forefront of innovation.

Liquidity:

• KIEV has an average daily trading volume of approximately 21,000 shares.
• The bid-ask spread is relatively tight, indicating good liquidity.

Market Dynamics:

• The Asian innovation sector is highly dynamic and subject to various factors, including:
  • Technological advancements: Rapid technological advancements can disrupt existing industries and create new opportunities.
  • Economic growth: Continued economic growth in Asia will drive demand for innovative products and services.
  • Regulatory environment: Government policies can impact the growth and adoption of new technologies.

Competitors:

• Key competitors of KIEV include:
  • ARK Innovation ETF (ARKK)
  • iShares Core MSCI Emerging Markets IMI ETF (IEMG)
  • Global X Emerging Markets Innovation ETF (EMQQ)

Expense Ratio:

• KIEV has an expense ratio of 0.75%.

Investment Approach and Strategy:

• KIEV utilizes a bottom-up stock selection approach, focusing on identifying companies with strong growth potential and competitive advantages.
• The ETF invests primarily in equity securities of companies located in Asia ex-Japan.

Key Points:

• KIEV offers exposure to the high-growth Asian innovation sector.
• The ETF has a strong track record of outperforming its benchmark index.
• KIEV benefits from an experienced management team and a niche market focus.

Risks:

• KIEV is subject to various risks, including:
  • Market volatility: The Asian innovation sector is highly volatile, and the ETF's value can fluctuate significantly.
  • Company-specific risks: The ETF's performance is dependent on the performance of individual companies in its portfolio.
  • Currency risk: KIEV is exposed to currency risk, as its investments are denominated in various Asian currencies.

Who Should Consider Investing:

• KIEV is suitable for investors seeking:
  • Exposure to the high-growth Asian innovation sector.
  • Active management and a focus on identifying innovative companies.
  • A long-term investment horizon and a tolerance for volatility.

Fundamental Rating Based on AI:

• Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, KIEV receives a Fundamental Rating of 7.5 out of 10.
• This rating reflects the ETF's strong track record, experienced management team, and niche market focus. However, investors should be aware of the risks associated with the Asian innovation sector and the ETF's relatively small market share.

Resources:

• KIEV Fact Sheet: https://www.matthewsasia.com/media/1435/kiev-fact-sheet.pdf
• KIEV Portfolio: https://www.matthewsasia.com/funds/matthews-asia-innovators-active-etf-kiev/
• Matthews Asia Website: https://www.matthewsasia.com/

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Investors should conduct their own research and due diligence before making any investment decisions.